Reducing overhead costs is one very important component of any strategic business plan.
And the cost to lease office space is often one of the biggest overhead line items in a company’s budget, which is why it’s so important to use office space efficiently, especially in areas of the country where square footage comes at a premium.
Many businesses use offsite storage solutions to scale up or down as a business grows and changes or to maintain historical documents in a secure location. But just how can using business storage actually help reduce the costs associated with leasing commercial office space?
To begin, let’s take a look at some basic factors that drive rent prices and how much a business should generally spend on this overhead line item.
What Does It Cost to Rent Office Space?
Cost per square foot to lease an office space varies widely depending on factors like unemployment rates, vacancies, demand and location.
According to statistics compiled by commercial real-estate platform TheSquareFoot, San Francisco, New York and Washington D.C. are (not surprisingly) some of the most expensive markets per square foot.
And the price per square foot even can vary widely within a state. For example, in Texas, it’ll cost you $48.50 per square foot to rent space in Austin, while you can lease commercial space in Houston and Dallas for $31.40 and $28.90 respectively.
Plus, business owners must take into consideration a number of other factors when deciding how much space to lease and at what price, including the number of employees and the average square foot per employee that is desired.
Additionally, business owners should take into account whether they want access to conference rooms or kitchens and how many private offices are needed, all of which require more square footage.
Finally, business owners have to consider costs in relation to financial realities. As a rule, a business’s occupancy costs—that is, rent plus any additional expenses like CAM fees, insurance and property taxes—should not exceed between six and 10 percent of total gross sales.
Maximizing Space and Lowering Costs for your Business
With all of these variables to consider, it can be tricky to find office space that’s tailored exactly to a company’s immediate needs as well as to its projected future needs.
Using a storage facility is a far better use of a company’s resources since cost per square foot at a storage facility is generally much lower than that of a fully finished office space.
Using a storage facility is a far better use of a company’s resources since cost per square foot at a storage facility is generally much lower than that of a fully finished office space. A storage facility can pass discounts along to its customers since it doesn’t have to be located at the epicenter of a city’s business district and so doesn’t have to pay a premium for square footage.
When a business has quick, convenient access to its files, furniture or equipment without having to store these items on-site, it can provide more space for its existing employees to work or add to headcount without having to lease a new space. And that can add up to big savings.
Plus, using a facility that provides a logistics team to manage delivery and installation processes means businesses don’t have to pull employees from day-to-day work and pay them to perform those duties that are probably outside their skillsets anyway
Finding a Storage Solution to Fit Your Business Needs
Whether your company has a development project with logistics needs or simply needs a more cost-effective way to store simple items like banker’s boxes, Callbox Commercial Storage, Logistics and Event Setup offers a solution that’s tailored to your company’s unique needs and budgetary considerations.
With over 20 regional warehousing hubs and everything from project management to seasonal asset storage solutions, Callbox has you covered.